KUALA LUMPUR (March 20): Petronas Gas Bhd (KL:PETGAS) said it has received the Energy Commission’s approval to adjust its tariffs for the usage of its gas pipelines and regasification terminals, effective throughout the financial year ending Dec 31, 2025 (FY2025).

The adjustment sees lower tariffs for all regulated services — piped gas transportation, regasification, and supply of high-pressure gas to Singapore — compared with 2024 levels.

PetGas, however, did not indicate the impact of the adjustment on its revenue in FY2025. In FY2024, it adjusted the rates higher year-on-year, which it said at the time would impact its gas transportation and regasification business revenue by 1.6%.

Under the latest adjustment, the tariff for transportation of gas along its Peninsular Gas Utilisation (PGU) pipeline was lowered to RM1.049 per gigajoule (GJ) per day, from RM1.096 imposed in 2024.

Also lower is the regasification tariff for PetGas’ facility in Sungai Udang, which was adjusted to RM3.456/GJ/day, from RM3.465 in 2024. The Pengerang Regasification Terminal’s regasification tariff was similarly adjusted to RM3.149/GJ/day, from RM3.15 in 2024.

Meanwhile, the compression tariff for the supply of high-pressure gas to Singapore was also lowered to RM1.609/GJ/day, from RM1.701.

Tariffs for the utilisation of these facilities and services are regulated and adjusted higher or lower every year “in relation to reserved firm capacity and internal gas consumption”, PetGas said in a filing.

The annually adjusted tariffs are also benchmarked against base tariffs, which are fixed every three years under the gas industry’s incentive-based regulation (IBR) framework. The year 2025 is the last in the three-year Regulatory Period 2 (RP2) of 2023-2025.

Aside from gas transportation and regasification, PetGas also operates a gas processing business, and undertakes utilities projects that supply electricity, steam, and gases like oxygen and nitrogen.

At Thursday's noon break, PetGas shares settled 1.65% or 28 sen higher at RM17.20, with a market capitalisation of RM34.03 billion. The counter is down 2.7% this year.